lori: it is back to work monday. good afternoon. i am lori rothman. i am hurled. melissa: and i am melissa francis. chuck hagel and john brennan. we will bring you the president's remarks. lori: the dow is down 81 points.

ten points off session lows. i'll call it gets set to kick off fourth quarter earnings season tomorrow. melissa: is washington in need of a new perspective? are you ready for some football? the title up for grabs. do you know who is playing? melissa: sure. i have a lot of notre dame friends that are at the game. lori: do you know the point spread? as we do every 15 minutes, it is back to the floor of the new york stock exchange. nicole: let's take a look at the major market averages.

we did it a five-year high on the s&p 500. we are pulling back here. the dow jones industrials down about 80 points right now. there has been selling across the board from sector to sector for the most part, it has been selling across the board. bank of america is one of the banks. they will pay $3.6 billion over to fannie mae. part of that is that bank of america will actually do some repurchasing. $6.7 billion that were spilled over to fannie mae. it is a done deal. we did see them hit a 52 week

high. back to you. connell: the difficulties lawmakers face in tackling the nation's biggest problem, a new crop of u.s. lawmakers joined a new face in the house and senate. let's get a fresh perspective from the freshman congressman markwayne mullin. a republican from north carolina. thank you for joining us this morning. what is your first impression we met it was like walking into disneyland. a lot of things are not -- the way they get treated is almost funny. we need to come home or so we get a reality of what things are like. melissa: when you first said disneyland, i thought you were going to say great. >> have you been to disneyland? [ laughter ] we are still elected officials.

we are there to represent the people. when you get there, people start treating you like you are somebody. all of a sudden, you are supposed to be an expert. i run a lot of cattle and i am really good at that. on everything else, they expect you to be an expert. they call you congressman every time you walk into a place. you asked for a cup of coffee in three people try to hand it to you. i think that is where we lose reality. we are there to hold the government accountable. we are not up there to be treated as something special. you loose touch of reality real quick. melissa: you said that you swore you would not serve more than six years of office. >> yes. melissa: you run your company families plumber company.

>> when my wife and i took over this plumbing company, we had over $5000 of debt. to me, i was 20 years old and we only had six employees at the time. it took us three years working around-the-clock to get us out of debt. just because we are dealing with 500,000 not 16 trillion, we still have to understand that there will be hard decisions that you have to make now on your own terms and you cannot always go back and borrow money. eventually, the bank says no. melissa: when i say to people, you would never want your household like this that you would never run a business like this, the responses it is different when it is the government. do you get resistance when you

say, you know, i would not run my plumbing business like this? >> absolutely. not to everybody. you have to think about how many new faces are up there in the last two years. there are a lot of people saying the same thing except our forces have not been quite as loud. if we continue to operate this way, we all know we will be in trouble. i was not looking for a job, i just simply got fed up with the way the government was working. we have over 120 employees now that work for my wife and i. they are costing themselves jobs at the same time. they talk about getting the economy started and they are making it harder and harder for business owners like me to comply with more regulations. how do you convince them of that? melissa: you went and got on the bus with the democrats.

when you got to washington, it was very divided. what was that like? >> no different than walking through any county in my district. why are we judging people because they have an r and ada d in front of their names? we have to realize we cannot be judging people because of an art and a d. we sent people there to get america back on track. if we continue to operate in a basis that is politics first, it is party first and not country first, we will continue to go down this slippery slope and we will never build a bridge to gap the two. we are facing over $16 trillion of debt.

melissa: it is a huge problem. we are out of time. i hope for you will come back on the show soon. thank you. lori: we do have breaking news. you see why he was elected. melissa: absolutely. we want to get to which it said at the white house. rich: democrats and republicans may have some issues. chuck hagel, a republican senator for two terms from the state of nebraska, he has certainly been on the opposite side. once calling for direct talks with hamas. some others have issues with what he said about israel. also, he started out as a

supporter of the iraq war. then, he flipped on that. eventually, he came out against the troop. he also called the defense budget bloated. some question that he would be too tough on military spending. that is the next fight in washington. that deal puts off what is known as the soap quester. tte automatic spending cuts. but those cuts off for two months. congress is now going to wrestle with how exactly to replace those cuts, slow down those cuts or change those cuts. there are a number of republicans who have concerns over the former senator's record.

a number of these issues have come up. we are not quite getting a firm read yet on exactly how it shakes out. there are concerns. back to you. lori: thank you. i wonder what the vegas odds are. so interesting that hagel has most of the opposition from other republican senators. agreeing to a deal with the government. a case-by-case review of foreclosures. how consumers may benefit. melissa: we will tell you when and how much it will cost you at the post office had. you can see gold trading down. we will be right back. ♪

lori: we are waiting for the president. there is a podium at the white house. we are expecting him to introduce chuck hagel and mr. brunn -- brendan. all kinds of questions surrounding the nomination. his position on iran, israel, the iraq war.

a little curious about this nomination. thoughts about israel coming up. here is the president. >> good afternoon, everybody. please have a seat. as president and commander in chief, my most solemn obligation is the security of the american people. over the past four years, we have met that responsibility by ending the war in iraq and beginning a transition in afghanistan by decimating the al qaeda court and taking out osama bin laden. by disrupting terror plots and saving countless american lives.

among an outstanding security team, i am especially grateful to leon panetta who has led the cia and our military with incredible skill. leon, after nearly five decades of service, you have more than earned the right to return to civilian life. i will have much more to say about leon's distinguished service in the days ahead. today i simply want to convey to you the paternal gratitude of the entire nation. thank you so much. i also want to think michael who has earned the admiration of all of us who has worked with him. in moments of transition, he has guided the cia with a steady hand as acting director, not once, but twice. he is a constant professional. as i said, everyone in the white house who works with him from a

everyone across agencies who works with him, consider him to be truly one of our most outstanding national security team members. michael, on behalf of all of us, thank you for your continued service. as these leaders know, the work of protecting our nation is never done. we still have much to do. ending the war in afghanistan and caring for those who have borne the battle. preparing for the full range of threats, to the unconventional to the conventional, including things like cyber security. within our military, continuing to ensure that our men and women in uniform can serve the country no matter who they love. i am proud to announce my choice for two key members of my national security team, chuck hagel for secretary of defense and john brennan for director of

the central intelligence agency. chuck hagel is the leader that our troops deserve. he is an american patriot, he enlisted in the army and volunteered for vietnam. he was a young private and then a sergeant. he served with honor alongside his brother. when chuck was head -- to this day, chuck bears the scars and shrapnel from battles he fought in our name. chuck hagel's leadership would be historic. he would be the first person of enlisted ranks to serve as secretary of defense. one of the few secretaries who has been wounded in war in the first vietnam veteran to lead the department.

chuck hagel, they see a decorated combat veteran of character and strength. they see one of their own. chuck is a champion of our troops and veterans. he fought to give our veterans the benefits that they deserve. as head of the uso, he devoted himself for caring for our troops. he helped lead the fight for the post- 9/11 g.i. bill. having cochaired my intelligence advisory board, he knows that armed forces collect and analyze on good intelligence. chuck recognizes that american leadership is indispensable in the american world. i saw this in our travels together in the middle east. he understands that america stands strongest when we stand with allies and friends.

as a successful businessman, he also knows that even though we make tough fiscal choices, we have to do so wisely. maybe most importantly, chuck knows that war is not an abstraction. he understands that sending young americans to fight and bleed in the dirt and mud that something we only do when absolutely necessary. my frame of reference is. towards the guy at the bottom. who is doing the fighting. and the dying. with chuck, our troops will always know, just like sergeant hagel was therefore his own brother, secretary hagel will be there for you. finally, chuck represents the bipartisan tradition that we need more of in washington. for his independence and

commitment to consensus, he has earned the respect of national security and military leaders. in the senate, i came to admire his courage and judgment, his willingness to speak his mind even if it was not popular, even if it divides the conventional wisdom. that is exactly this. i want my national security team. recognition when it comes to the defense of our country, we are not democrats or republicans, we are americans. each of us has a responsibility. to be guided not by the interest of our party, or the president, even, but by the interest of our country. chuck, i think you for agreeing to serve once more in the interest of our country. now, while i am on the subject of patriots, let me say a few words about john brennan. john brennan, the men and women

of the cia, they will have one of the most skilled intelligence professionals. smart and strength that he claims comes from growing up in new jersey. [ laughter ] >> 825 year veteran of the cia. john knows what our national security demands. intelligence that provide policymakers with the facts. given his extensive experience in travels, which include, by the way, traveling through the arabian peninsula where he camped with tribesmen in the desert. john has an invaluable perspective. the desire for human dignity driving so much of the changes in today's world.

john is committed to investing in the range of intelligence capabilities that we need. he literally built and then let the national counterterrorism. he knows the risk that our counter intelligent face every day. john has lost colleagues and friends. john developed and has overseen our strategy. a collaborative effort across the government, including law enforcement agencies. think about the results. more al qaeda leaders and commanders have been removed from battlefield and in any time since 9/11. their communication is all under

enormous strength. all of which makes it harder to plan and carry out attacks against our homeland. our entire team, including our exceptional director of national intelligence, we will remain relentless against al qaeda and its affiliates. in all of this work, john has been tireless. people here in the white house work hard. john is legendary even in the white house for working hard. he is one of the hardest working public servants i have ever seen. i am not sure he has slept in four years. when i was on martha's vineyard, john came into the press briefing, he was in full suit

and tie in the middle of summer. one of the reporters asked him if he ever got any downtime. john said, i do not do downtime. [ laughter ] >> he is not even smiling now. [ laughter ] >> there is another reason i value john so much. it is his integrity and commitment. he has worked to embed our efforts in a long legal framework. he understands we are a nation of laws. in moments of the debate and decision, he asks the tough questions and he insist on high and rigorous standards. time and again, he has spoken to the american people about our policies because he recognizes we have a responsibility to be as open and responsible as possible. john, you have been a great

friend. i am deeply grateful for your extraordinary service. i am even more grateful for cathy's willingness to put up with you. i am grateful for both of you to take this assignment. today, i can say to the men and women of the cia, you will have one of your own. a leader who knows you. he cares for you deeply and will fight for you every single day. you will have a leader who has my complete confidence in my complete trust. as i said, the work of defending our nation is never done. my number one criteria in making these decisions was helpful. who would do the best job in securing america. these two leaders have dedicated their lives to protecting our country. i am confident they will do an outstanding job. we need to keep our nation secure and the american people

safe. chuck and john, congratulations. i want to invite each of these leaders onstage to say say a few words starting with mr. leon panetta. lori: leon panetta. bringing up, sorry, hagel's history. saving his brother during the vietnam war. melissa: lou dobbs will talk about that coming up later on the show. lori: let's go onto our next controversial statement. he has new details on steve cohen. melissa: you are always controversial. charlie: here is what is interesting about steve cohen. in february, as they see faces a

window of redemptions. here is what we know. fac officials are screaming to prevent massive reductions. they are currently contacting and holding one-on-one meetings with investors. they are essentially saying that despite everything, the investigation -- a wells notice has been given. despite all of that, they think that steve cohen we'll be okay. they may get a large fine. they think they are facing charges. they will not be indicted. it will not be a criminal case. keep your money with us. the bottom line is this, you do

not know until february. investors essentially hate this type of controversy. some very large investors have put holds on the stocks. i can also tell you, steve cohen and these guys are very aggressive. they are out there trying to get large investors to stay with it. they will come out after the story. these are different one-on-one meetings. this is crisis mode. they think there is a very good likelihood that they will get massive reductions. we should point out that the hedge fund is $14 billion. there is a chunk of each. these people get very skittish

when stuff like this happens. will there be massive redemptions? they are bracing for the obvious likelihood. lori: thank you, charlie. you are fired up. melissa: time for stocks now as we do every 15 minutes. nicole petallides is standing by watching markets. nicole: let's talk about the major averages right now. the dow jones industrials down about 70 points right out. the s&p 500 selling off. there is this way and the moment. now we are waiting for earnings season. we have most of the averages to

the downside. i want to take a quick look at netflix. this is a new licensing agreement that they are working with. netflix is up 1.5%. this is after they recently had a deal with disney. netflix continuing to try to grow. you are seeing all of these names on the move. back to you. melissa: thank you so much. thanks reaching a settlement. we will tell you which banks have signed onto it and what it could mean for you. lori: college football to most challenging teams facing off tonight. the local

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melissa: 10 of the nation's major banks agreeing today to pay billions of dollars to settle federal complaints they wrongfully foreclosed on homeowners who should have been allowed to stay in their homes. adam shapiro is covering the story. he jones us now. adam? >> this is historic, remember they had the independent financial reviews because the mortgage, the mortgage servicers and the banks had so thoroughly botched the modifications of people who were in trouble with money that had been provided by the federal government to help prevent foreclosure. one case more than 4,000 members of the armed forces had their homes foreclosed on and that is against federal law. this review process was set up. and that was getting botched

by the banks. they have a settlement with the occ and the federal reserve for 8.5 billion. here's the key. roughly 4.4 million people fall into the category of eligible borrowers. from the statement. quote, eligible borrowers will receive compensation whether or not they filed a request for review form and borrowers do not need to be take further action to eligible for compensation. that could be anywhere from 100 bucks for your heartache or up to $125,000 for your heartache. i don't know if that will solve problems for the a lot of people. the occ say very few will get the $125,000. see the list of banks involved. want to let you know the national fair housing alliance says this is not a great deal. they gave me a quote. the cash payments is wholly inadequate in light of the scale of the recall ha. the banks will go forward. this thing will behind them. back to you. melissa: adam shapiro, thanks so much. lori: switching gears here, sports. my next guest says tonight's

big bcs title game is shaping up to be the perfect storm for advertisers, schools, conferences. win or lose, notre dame receives a payout of $6.2 million for showing up. sb nation senior correspondent is here with more on the business behind college football. amy, welcome back. >> thanks for having me. lori: how as a moneymaker does the bcs title game compare in terms of money making not just other big college games but pro games as well? >> you can't compare anything to the super bowl. everybody agrees the super bowl is by far the biggest sporting event and biggest moneymaker. if you look at tonight's game it is the perfect storm. we have two programs that come from, --,. lori: tradition. >> tradition, history. alabama part of the sec and sec fans are kind of crazy but really intense and really loyal and we also have notre dame which is probably the most polarizing team in all of college football. lori: i can agree with that

coming from usc. >> you know what i'm talking about then. lori: does that generate more dollars because of history, the way you described that? >> you have nuchlt per one, number two. espn is broad can -- broadcasting the game. they had told 75% of their advertising already. ads are reportedly going for million dollars for 30 seconds that is significant change. super bowl, 3.4, $5 million and you can't compare the two events that is significant for college football, and on the rise particularly for advertisers. lori: considering that is double what fox would get for a world series spot, one million per 30 seconds that is college game, to your point that is still impressive amount of money? >> impressive amount of money. what is also impressive, and coveted for advertisers is the demographics. college football is on the rise and close to overtaking major league baseball as second most popular sport in the country. obviously the nfl is first. dem of course gras 18 to 24

which is important for the advertisers. 18 to 24-year-olds are predominantly college fans as opposed to baseball fans that skew much older. lori: you have four brands, toe seat toes, vizio, which rotate sponsorship the title game. >> right. lori: $10 million, discover is this year's sponsor. what is the projected take for them. >> somewhere around there. tonight will be very interesting. there are prognostications this might set a record for the all-time rating record for a college football championship fame. that will be really hard to overcome. we're looking 35.6 million people. need more people than that to tune in. but here's the thing. is that because of those numbers and because of the projections, there are, the future for the bcs in two years, they're going to have a four-team playoff system. that will be an estimated $470 million annually spread out around all the conferences. that is over double than

what bcs is bringing in right now. lori: potential college students in high school need to look at this and use it as bargaining chip for parents who don't want to pay the tuitions. this is keeping the financial institutions viable. with all that cash. >> can i have a little on the side now? lori: no kidding. amy, thank you for much. wish we had more time. who are you rooting for. >> not rooting for anyone but saying roll tide. that is my call. lori: thank you. melissa: president obama reaching across party lines and nominating former republican senator chuck hagel as secretary of defense. the decision facing resistance from both sides. lou dobbs makes sense of that all that coming up next. lori: let's look at interest rates. 10-year below 2%. that is important. 1.90%. we have a selloff in the equities markets. that's why we're not seeing too much of a gain. back with more after this ♪ [ indistinct shouting ]

male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ instinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪

melissa: here is your fox business brief. it is a tough day for the markets ahead of the start of earnings season which unofficially starts tomorrow. after the closing bell with aluminum giant calico's results. google executive chairman eric schmidt arriving in north korea today on a mission with former new mexico governor bill richardson. the state department says the trip is poorly planned after north korea recently launched a satellite into space using a long range rocket. you think the price of sushi at your local restaurant is expensive? a bluefin tuna sold for record $1.8 million in an auction in tokyo, japan. that is nearly three times higher than the previous record set last year. according a market official, the 489 pound tuna was caught off northeastern japan. that's the latest from the fox business, giving you the power to prosper.

melissa: president obama nominated chuck hagel as secretary of the defense and john brennan to lead the cia. already hagel though facing a tough confirmation fight. democrats don't exactly love the former nebraska senator because he is a republican. republicans don't think he is a real republican. plus hagel's past remarks have angered two key obama continue whensies, jewish groups and gay rights activists. lou dobbs is here on the latest fight in washington. something for everyone. >> it is and it is one of those fights that is going to be, already begins to ring hollow in this sincerity of people really going after him. the idea that he has made mistakes, clumsy statements without any question in the past. he has made some horrific votes when it comes to iran in particular. but the fact is this is a distinguished, distinguished former senator. he is successful businessman. he is a decorated, wounded

warrior serving in the vietnam war. as the president today pointed out of the he will be the first, first, noncommissioned officer enlisted man, to serve as the head of the department of defense. that alone, i think will strike a lot of people as sufficient reason to put him at the top of the, at the top of the defense department. lori: one of the things that makes me chuckle that the comment that the pentagon is bloated in its spending. >> right. lori: as he approaches sequestration, meant to be punitive defense spending cuts how is all that going to sort out? >> i think it is one of the questions the republicans in particular have, the question whether or not this is the time to bring that kind of history of criticism of the pentagon and spending, particularly when facing automatic spending cuts that will comprise, even though it is only 1/20th of the spending of the federal government it will comprise 50% of the cuts that is inconvenient. that could be a problem but the president, to his credit,

is pushing forward and i say his credit, not supporting or, you know, or criticizing hagel's nomination but i think it is important for any president to stand up to move forward what he thinks is the nomination of the appropriate person to serve as head of one of these departments. melissa: you say the criticism rings hollow. do you think it will not stick? it is only here at the on set and will beers oweser than it looks? >> for example, the they israeli lobby, he one time clumsily called it the jewish lobby. some of the people criticizing him, you're doing more so to develop their own bonefides with the israeli lobby. some of those people who are castigating his positions on the surge in the iraq war who are suggesting that he was not sufficiently antiterrorist, i think are doing so more to establish, again their own bonefides rather than question his

judgment because people can have honest differences of view in this case with hagel. i think he sincerely believed what he said and had the conviction to stand up for it. but the issue is he will serve the president of the united states. his judgment on that will be secondary to that of the commander-in-chief. everyone involved in this, republicans and democrats, understand that reality. lori: do you have a comment on john brennan who will take over from petraeus on the cia? >> john brennan is probably as well-qualified to serve as any cia director. 25-year veteran. he was put forward as you know for the job back in 2008 by president bush. so the, those who would go after him on this i think would be wasting their time. he's, even though he has been accused of being involved in enhanced interrogation techniques including waterboarding, he has been very dismissive of that. one of the criticisms i would have of brennan is that he wrote basically a

political document on both, well, on enhanced interrogation techniques and also peremptory warfare which i thought, it was more of a, my hands are absolutely pure in every way politically. i thought that was an unfortunate gesture on his part and unnecessary one but other than he is eminently qualified. lori: we're all just human after all. we're all just people. melissa: first line of defense. >> our first limitation. melissa: thank you, lou. you can see lou here every day at this time and of course at 7:00 and 10:00 p.m. tonight catch former congressional budget office director douglas holtz-eakin. will you fix the whole fiscal mess? budget problem? senate, president and house go at that. i would not want to preempt any of that and deny the american people a entertainment. frustration, of course, glad to share it with you.

i hope holtz-eakin has ideas. we'll hear those you. melissa: thank you. >> thank you of. let's check nicole at the stock exchange. >> we're seeing oil services inindex to the downside. we're looking at some of the names in particular. you are seeing they have down arrows here. some of the ones that received downgrades. test sore owe down 5.25%. that is dramatic down day for any stock. these four in particular got down grades at howard weill. baker hughes and phillips 66. so they have been coming under pressure. on the other hand i want to throw in hess and devon energy. those two got upgrades. that is why you see up arrows. hess up for example, 1%. deutsche bank upgraded them to buy from hold. lori: thank you, nicole. we have new evidence sanctions against iran are starting to hurt even as the nation refuses to rein in

its nuclear program. melissa: turns out flat rate is going up. what you need to know as the usps raises prices again. at a dry cleaner, we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally.

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>> u.n. sanctions cutting into iran, oil experts down 40% the last nine months, cutting revenue by 49 #% as the nation refuses to reign in the program. pits of the cme and phil flynn of price futures group.

is that news that traders follow pretty closely 1234 >> i mean, you knew it, and i knew it. we just were not sure the iranians knew it. it's new they admit the sanctions are impacting oil prices. yeah, everybody in the world knew it. iranians have been blustering, you know, has not had a big impact. it's had an impact, and it really has. i don't know if it's impacted trading today. the market has a lot to worry about. raising the debt ceiling? you know, are we able to overcome this big crude oil build that everybody expects is going to happen this week. right now, it seems like the crude oil is driven higher by heating oil. cold temperatures in the northeast downgrading forecasts, driving up the heating oil. that's dragging up the crude oil, kicking and screaming right now. melissa: i feel like with iran, they sell more oil than we know or than what they tell us. there's so much sold under the

radar, but, still, natural gas -- >> i think they are, yeah. melissa: yeah, more natural gas production than ever beforement we know that. is that impacting the market? >> it is, they were colder than normal. we had a good rally, and it's unusual to get a big picture report to move the market, but shortly after that report came out that said natural gas production was up that much, the market did sell off so it's amazing. i think people are realizing the impact of the record production on gas prices, and it's bringing them down now. melissa: thanks so much. >> thanks. melissa: going to cost you more, and by forever, i mean, united states post offices forever stamps. come january 27th, goes up to a penny -- goes up by one cent to 47 cents. also introduced, a new global

forever stamp allowing customers to mail letters all over the world for ten crepts. they lose $25 million each day and new congress sworn in last have helped create a more profitable business model expired. no solution. >> haven't dealt with it. it's amazing. what other business do you go in with a line out the door, but they lose $25 million a day. i mean, how is that possible; right? >> well, most state government. >> a line out the door, show up, there forever, trying to get through, wow, it's great business. nope. they are losing money hand over fist. >> i was going with the entitlements and all the stuff that's in the municipalities and state's underwater as well. >> i don't know, private equity for the post office. >> you still want to represent it, don't you? >> i do. joining me to discuss the lawsuit against all states. the insurance company refuses to pay for damages caused by the

storm, but it's the pictures of the home in ads promoting themselves for being helpful to storm victims. can you imagine that? they are mad because they have done a terrible job helping ttem, and their house is in an ad. wait a second. >> yeah. >> tonight at 5 p.m. eastern here on fox business. >> uncomfortable. >> yeah, will be a good one. >> prepare for that. i'm sticking around here. ashley's on the way. we'll see what happens in the next hour on fox business, talking, of course, about former g.o.p. presidential hopeful and tim palenny to talk about the security pictures, the spending battle, and more. dow down 73 points, stick around.

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for a full 60 days. use promo code: gethelp. plus get this document shredder free-- but only if you act right now. call the number on your screen now! [ male announcer ] how do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. try our easy-to-use scottrader streaming quotes. it's another reason more investors are saying... [ all ] i'm with scottrade. melissa: good good afternoon, tk here. ashley: stocks under pressure, the dow shedding points down, nearly 74.s now, and s&p down from its five year high, by the

way, hit on friday. they are bracing for fourth quarter results, and how this plays coming up. lori: nice to focus on that rather than washington. big banks paying up once again. this time for questionable foreclosures paying millions of homeowners up to $125,000 cash each. how that could impact the housing recovery just ahead. ashley: good change there. president obama rounding out the national security team with controversial picks. former g.o.p. presidential candidate and minnesota governor tim palenty weighs in and how that could impact washington's battle on government debt and spending. he's along as well. it is a fox business exclusive. lori: up to speed where the markets are trading as we do every 15 minutes. nicole's on the floor of the new york stock exchange. stocks coming down from the lally. >> that's right. hit a five year high last week for the s&p 500, and stocks had

52-week highs, and today, trying to squeeze out gains, but the sentiment and market has been under pressure to the downside. a look at the dow jones industrial down half of 1%. names on the move, looking at names, by the way, alcoa kicking off earning seasons. we'll watch for that. pandora and apple, good news this week. apple with the downloads, and pandora with more lisseners. they are seeing that there has been growth, and, yet, pandora's gone back and forth, up one-third of 1%, and apple is now down near 1%, but traded as low as 515 today. up over 10% is vivus, but there's a obesity drug that sees a lot of prescriptions, and we're seeing that one jumping, back to you. ashley: all right. lori: thank you so much.

ashlie-- ashley: banks agreeing to pay billions of dollars for wrongfully fore closing on homes. we have been following the story, and all the details, adam? >> you remember the robo signing scandal, and the banks foreclosed upon members of the armed services serving in iraq and afghanistan, of course, against federal law so the federal government, federal reserve imposed upon a bank an agreement to conduct independent reviews. that did not work. it was botched and bogged down that they have a settlement. 8.5 billion dollars to eligible homeowners, roughly 4.4 million who might be eligible, but just a few actually qualify for the $125 ,000 cap. that's how much someone wronged by robo signing or fraudulent foreclosure gets from the bank, and not everybody will get some

of the money. here's what housing advocates say about this deal. this is coming from the national consumer law center and alliance. they say first that the capped pool of cash payments is inadequate in light of the scale of the harm saying that if the reviews had been done right the first time, banks would have been on the hook to pay far more to homeowners. now, one of the good things about this, not just for the banks, but it minimizes how much exposure they have in regards to the federal government coming after them. it also puts most of this robo signing, mortgage foreclosure abuse scandal behind them. it leaves open, however, that the homeowners wronged retain the ability to sue the banks, and they also still have to provide assistance, the banks, to those people. they will not be signing waivers relinquishing their rights. back to you. ashley: adam, thank you very much. they can still sue the banks, even though they got a settlement. adam, thank you very much. lori: important footnote and

continuing with the topic here, how will the foreclosure settlement impact the housing market's recovery? bringing in housing expert professor of real estate and finance in philadelphia. susan, greetings to you, and thank you for joining us. >> my pleasure. lori: is this is good thing or bad thing? >> good thing for the overall housing recovery bringing renewed confidence back to the banking sector which is key to the housing recovery. the recovery is in full blown recovery mode, the housing market in full blown recovery mode right now, but the key to a strong recovery is bank lending, and right now, bank legending is pretty constrained. it's easing up already. lori: takes a long time, even for the best borrowers, people with the best credit histories to get a mortgage so do you think this would enable the time frame to get a mortgage to shorten up if you will or, you know -- >> i think so.

lori: or so nervous of running the risk of another situation like this? >> well, there still is a very large, negative ora around the housing sector and mortgage sector, no doubt about it. as legacy issues are put aside, there's renewed confidence. you know, homeowners, potential homeowners, representers today, are bringing back, coming back with renewed confidence. the key here, even though housing is an all-time affordable given the low mortgage rates and low prices is it's difficult to get a mortgage. banks have swung over and the pendulum swung to the other side in terms of making very difficult to get a mortgage, down payments very high, but they are easing up, and i think this eases further. lori: what's the happy medium? what's the status of foreclosures? there's an argument that the shadow inventory is still there and foreclosures need to happen to fully rehabilitate the housing market? >> well, the shadow invenn story is thankfully'sing --

thankfully easing back into the shadows as prices go up. there's an underwater massive amount of homes that could potentially come through the foreclosure process and hit markets, but that's not going to happen as housing prices increase. we'll see that -- first sloily and then quickly, that problem will ease up. in addition, there's properties now already in the foreclosure process. those are more likely to go to short sales as housing prices rise as well. we're now in a vir virtue cycle. i see that happening now that the nighs calf cliff is decided. >> people who are entitled, victims of the robo signers, if you will, a wide range of the settlement, $100 to $125,000. what difference does it make to the case? can they get better credit and back into a mortgage? >> well, it will help.

it wiil help hundreds of thousands, estimated about 400,000 borrowers who had been harmed, could be potentially helped by this settlement. most will not get nearly the $125,000, which is the cap, but you see the proceeding arrangement was one where you had to apply and, in fact, very few were going through the process. this helps facilitate getting the funds and get the legacy issue behind. >> does it repair the credit quality? >> it will. it can help, depends on where the money goes to, and particularly, if, in fact, a home that is about to be fore closed to be helped in the situation, but, probably, beyond that. these are mortgages from 2009 and 2010 so we probably movedded ahead. lori: thank you so much. susan walker, warton professor of real estate and finance. >> thank you. ashley: all right. coming up, investors on edge as

the critical earning season begin. will last week's new year's rally be short lived? seems so at this point. lori: all a distant memory that continues to fade with the dow down 68 pointings. washington gearing up for a spending battle. president obama spark another fight over the national security picks? we have tim palenty's thoughts next. first though, how oil is trading up. we're back.

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lori: making money time with charles payne, following up on a previous recommendation, the industrial metals sector. >> that's right. coal, you know about that? the one thing you want to build, the beams with. you know, there's thermal, used to heat the home and things. they all traded together, and it's been over sold. december #, i talked about walter energy, december 4th, rather, walter energy, it was 29.71, it's at 40 bucks right now. i might have missed it. i hope the viewers got it. normally, i come on the show and

say take the profit, that's huge over a five week period. hold on to it. it's on the cusp of a breakout with a close above 40. this is a stock that was 75 bucks early last year, and, again, i think the selling's been overly done, very severe, and insiders are meddling, not big on it, but nibbling. the shorts also -- ashley: under fire as we know with the regulations, a big story of 2012 so where's the demand coming? overseas? >> overall, the forecast for the industry is 3.2% global demand, 3% from china, and india is the biggest at 5%-7%. europe could be bouncing back which would be good. certainly, demand. also, volume is huge in part because the stock's been in the rumor mill for two or three or four years. if you thought -- if you -- if you think it's the stock at

$75 a share, down to 40, it could be making sense as well. >> interesting strategy. $40 is the level -- could it break out from here? wondering if it's testing resistance? >> oh, absolutely right, it's testing all day on strong volume, and would be a buy signal so in this case i say, normally, ring the register, but this time, it's a buy more than a sell. lori: interesting. thank you. ashley: as we do every 15 minutes, check the markets now, nicole's on the floor of the new york stock exchange. there's big movers. >> that's right. analysts make the calls and tell you why. the stocks moving, and first off, amazon, up 3.25% climbing to the high after the upgrade, raised from an overweight to a voice, and 267 here today, but price target is $325, and one of the reasons they are upgrading is growth potential in emerging markets so the prospects for

that certainly are one of the reasons why they are looking at that and talking about global e-commerce sales or not rise to 23.5% by 2016. obviously, they think there's growth potential, and as a result, they are giving the growth prospects, and that's the up arrow. laos downgraded today. they were cut from a hold, and lowe's underperformed home depot, and down 2.5%. just talking about the sizable investment that lowe's made in e-commerce and whether or not that is really good news for them because only 1% of the sales are actually from online so maybe they are not investing money in the right way, and that's the concern that they have, and that's the reason why they have done a downgrade today. back to you. ashley: all right, thank you so much. we'll check back in in 13 minutes. lori: go rogue and not check the markets. ashley: check them in 14 minutes, out of control.

lori: so daring. how hagel could shape defense spending cuts, and said spending was bloated. should be interested. former minnesota governor joining us in a fox business exclusive next. ashley: first, look at how the dollar is moves now against foreign currencies. the euro up against the dollar. the pound up against the dollar. euro 1.31 testing recent highs, and meanwhile, up against the green back unless you have the mexican peso, we'll be right back.

lauren: i'm lauren green with your fox news minute. stranded after the coast is now under tow. successfully pulled from the island where it ran aground in a vicious storm a week ago. the rig is being toed at four miles per hour approaching the alaska coast where crews can determine if there's damage. shell says no evidence that the vessels' 150,000 gallons of fuel leaked into the ocean. the set dates to hear arguments in two gay marriage cases. california's proposition 8 on same-sex marriage will be heard march 26 #th, and the defense of

marriage act is heard the following day on march 27th. new violence in syria after president assad's declaration that he will not step down in a public address, he announced only he dictates the end of the civil war, a 21-month conflict costing more than 60,000 lives so far. those are your headlines. back to ashley. ashley: lawn -- lauren green, thank you so much. appreciate it. president obama facing heavy oppositions from republicans about the nomination of secretary of defense, and rich edson at the white house with more on this story. rich? >> well, one of the next of many fights in the u.s. senate, this one for senator chuck hagel, the president's pick to lead the pentagon, ashley, and looking at the case the white house makes is one that he's a decorated combat veteran, bun who is a bipartisan pick as a former republican senator from the state of nebraska, shows, the white house says, dependence in the pick, and advocate for war

veterans, and the white house wants to make the point that he would be a solid steward of taxpayer money. >> as a successful businessman, he knows as we make tough fiscal choices, we have to do so widely guided by strategy and keep the military the strongest fighting force the world has ever known. >> giving republicans pause, once described the budget as bloated, something he wants to address the the pentagon, and, also, comments made regarding the u.s.' support in israel, notably, one statement, e said he's not the senator of israel, with a number of republicans charges he's weak on israel. >> the president is bound and determined to proceed down this path despite the fact that hagel's record is troubling on the nation of israel, not a friend of israel, and the united states should stand unsthaikenbly with the nation of israel. >> the nomination is almost an intersection between national

defense policy and fiscal policy. remember, ashley, automatic spending cuts that are to hit the pentagon at the tune of $500 billion in the next decade were put off by two months in that agreement that the president signed just a few days ago so defense cuts next round already upcoming on capitol hill along with all the other issues that a number of republicans raised with the senator. back to you. ashley: very interesting. rich edson at the white house. thanks. lori: joining us more with the nomination and how that could impact the spending battle ahead is the ceo and former minnesota governor. governor, thank you for joining us, thank you. >> good to be with you. thanks for having me. lori: what are your thoughts on the criticisms for defense secretary? do you think it's warranted? >> well, on the positive side from president obama's perspective, there's a decorated war veteran, successful business person, demonstrated a clear and passionate advocate sigh for

troops and the family. you have somebody who called for a review or reductions in military spending at a level that makes many military advocates and analysts worried # or concerned. you can see the two positives and negatives coming in conflict in the confirmation process. lori: i was going to follow-up, governor, and point out that the sequestering cuts were meant to be punitive, put out as an example to be, again, to be punitive, and so that you understand that concern so if he does assume this position in the cabinet as defense secretary, what's the likelihood sequestering cuts come to fruition? >> both sides acknowledged that the sequester cuts applied to the military is have severe and draconian, they have to be avoided. president obama said that. the policy leaders have said that. given how difficult relations are in washington, you could see them accidently or really unintentionally stumble into a

situation that would be bad for the military, bad for the country, and i'm certainly no one hoping that that happens. ashley: you know, governor, he called the defense budget bloated in the past, and many would agree with him. can we walk that fine line between making those necessary cuts, but also not compromising our military abilities? >> well, keep in mind that the sequester cuts referenced a few seconds ago of approximately $500 billion over ten years are on top of an approximately equal amount programmed to occur. if all of that happens, that would be nearly a trillion dollars of impact over a temperature year period by any reasonable account which would be impactful on the military. can things be refined, streamlined, and achieved to economies of scale, prior prioritized, focused, eliminate duplication and have efficiency impacts on the military? of course. we don't want to go so far to impair the national security capabilities that the military

remits. >> all of this, of course, governor, begs to question if you would vote for hagel? >> for me and others, allow the confirmation process to occur, have a fair hearing and chance to explain himself and views on these and other matters. lori: what are -- >> i don't have a view yet, but i want to hear more on what he says about the issues. ashley: disappointment as some claim, governor, that the president is not a friend of israel? >> well, i think the concerns that have been expressed based on prior comments by senator hagel, he's going to have to put them in context and explain, but, look, the united states under this presidenttand other presidents n my view should always recognize the special relationship and our best friend in the region which is israel, comments, like i said, that caused concern. i think the senator has to explain that, and express or reexpress the commitment to israel in the confirmation process, no doubt about it.

lori: it's scary, the middle east right now, tensions about to explode, he's had misstatements on israel, his policy are iran is diplomacy, and you understand why people are, you know, again, to put a little emphasis on this thing with the middle east, a little bit concerned here with the president's take. do you see him stepping that up and getting more firm? the administration as a whole? >> of course. i think you could see senate hagel clarifying and confirming comments in a way that bring them back in line with -- in a way that addresses the concerns. be clear, anybody in public policy for a long period of time said thing or taken votes or done some things that raise eyebrows, but that doesn't mean 20 years subsequent change your mind or recommit to a preaches position. that could happen here. all of this signals that the president believes that in his nomination of chuck hagel, that chuck remits his views or will

going forward on these important issues, and so it's -- you'll see senator hagel and the president be unified on the issues going forward, but some of the past remarks have to be clarified, no question. ashley: i got to ask you, governor, as we get out of here, are you tempted in 2016 to throw your hat in the g.o.p. ring? >> no, i'm not tempted. i had my shot at it. that ship has sailed. lori: a lottof people were pulling for you. >> thank you, liz. i think it was just my immediate family, but thank you so much. lori: no, no. ashley: thank you so much. it's simple, raise taxes, take in more money; right? this is why uncle sam may not be getting the dividend tax wind fall they are hoping for. we'll explain next. lori: okay. look at winners and losers in today's trading session. there are winners in the session as you can see. we're back after this.

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i'm calling. call the hartford at: to request your free quote: call today and make the switch to the aarp auto insurance program from the hartford. why wait? ♪ ashley: 30 past the hour. you got the giggles already. checking the markets as we do every 15 minutes. we'll do it in 14 minutes, but we wanted to be safe with the plan. nicole? >> all right. well, i do too, look at the markets. down arrows across the board. market weak today, going into earnings season. alocoa the first to report this week. how do you feel about today's action? what do you think we'll see in earning season? >> don't panic there's a selloff in the market.

there's a nice run up at the end of the year last year, first few trading sessions here. this is a natural progression of market. it's going to be led by headlines and there was nothing special today other than bank of america news to move the market. this selloff now, be it small, is healthy. this week, earning season starts, kicks off with alcoa like you said. does that dictate the earning season? not really, but that lets us get feet wet getting deep into the season. i forecast we're going to have a season like last quarter, very guided projections moving forward, but we'll see profitable companies there with a lot of cash on hand. >> when you talk about guided or going forward, what are you -- so you feel like earning season is decent? >> will be very decent, but i think companies have learned over time to make sure that they protect themselves about their guidance. we don't know what the outlook is moving forward or what rules

and regulations will be in place. europe's out there. we are not taking about that, but they will be careful what they talk about. >> guarded so they are not caught later. thank you. enjoy when you are on. thanks. he's a also a floor governor as well. ashley: nicole, you also rule the roost. lori: i don't necessary -- mess with nicole or gerri either. ash whetherley: with companies g dividends to take advantage of the lower tax rate, the treasury may take in less than expected. the fisty gerri willis. at the end of the day em -- people gement around it. >> they raised special dividends, 483 companies declare

special dividends in december compared to the year prior. 156,000 companies declared dividends, and people got creative with it. admire the ceo of costco bow rowing 3.5 billion to pay a one-time dividend equivalent to six quarters worth. that's a megadividend, and then, as i said, he borrowed the money to pay this. the interest on the loan is tax deductible so it's like -- ashley: clever. lori: that's the person you want running america's companies. >> they would never work good in the government. i'm sorry, you would never see that person. which brings me to something important, and that's gerard, following that story? ashley: putin is taking advantage of the situation in russia, getting so much, you know -- >> oh, please, he feels kicked out because he's a drunk bloke. i was trying to -- ashley: well, you know --

>> left on his on, but i think he was kicked out. ashley: the tax rate, was out, went to belgium, they didn't want him. >> exactly, he's too drunk. >> russia likes him because french film is popular in russia. >> that's hilarious, and he always plays russian pes cants. >> now he can do it for real. >> important if i say so, it would have been worse because they wanted to raise the tax by over 40%, and in the deal, they got that raised just by 20%. i think there's a bid of a sigh of relief that it would have been worse on both sides for the companies issues as well as shareholders so, you know, the strategists are bullish on dividend stocks in the new year. well, you know how it is. i mean, they are bullish on everything it seems. >> everything crashes and burns. ashley: and embarrassedded. is that what we are talking about tonight? >> that and guns and the increase in sales in guns.

something a little different for us. shake it up, make a difference. give them something they don't see anywhere else. ashley: very good. i love it. thank you. can't miss "the willis report" tonight here on fox business shaking it up. lori: earnings getting going this week -- what's so funny? >> laughing about shaking it up, sorry. [laughter] lori: the wheels have come off for sure. >> there were wheels? >> yeah, we start in a very civilized manner. ashley: long gone. lori: kicking it off with alcoa, forty quarter this week, what to watch. people blame today's selloff ahead of the earning season, and sandra smith will preview, actually, here now. >> i'm going to shake it up. didn't shake up the soda can. alcoa makes them, the biggest aluminum producer in the world. talk about a stock that's

basically done nothing over the past year, $9 15, and it's been flat over the past year, but the past week, the stock has gone up 6% in an missing -- ananticipation of the earns aftr the bell tonight. there's a dow component, so there's a big impact on the market leading up to the earnings, and it's considered a gauge of the global economy because that aluminum not just goes into the soda cans we drink out of, but automobiles and other things because it's a gauge of the overall economy. shares down 1% today, and here's what we are # looking for in the report after the bell tomorrow, six cents a share, a loss experienced in the same quarter last year, and revenues are supposed to be down by 6% to 5.61 billion for the quarter. by the way, two straight declines in revenue, two straight declines in revenue so a turn there would be a welcomed story for investors, who, again,

look at a chart where the stock struggled to go anywhere over the past year so alcoa after the bell tonight, tomorrow night, guys, and lori and ashley, this will be a telling sign where the earning season is going. financials expected to be the superstars, but maybe we can see big industrial names come through as well. because you hear about the entire year and -- ashley: set the bar low enough. lori: exactly. always a strategy. thank you, sandy. >> thank you. lori: big gains to start the year, but what will the rest of the week bring in the oil pits? going to the pits of the cme next. ashley: it's the pits. lori: how many times can we say "pits"? ashley: i don't know, one too many i think. the ten year and 30 year are not in the pits. the 30-year, meantime, as we wait -- lori: i don't think there's a 30 today. ashley: suspense is killing me. you're not going to get it -- oh, unchanged today.

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♪ ashley: fox business break, markets continuing the downward trend ahead of the start of the earning season kicking off tomorrow with aluminum giant due out after the closing bell. right now, a lot of red arrows on the screen. dow off by 55 or 56 points. businesses, meantime, feeling jolly over the holidays, and challenging a gray christmas saying hiring hit a six year high despite uncertainty regarding taxes and spending. the out placement firm says retailers boosted papers more than 10% from 2011. according to the consumer electronics association, global spending on electronics rise 4% this year to $1.1 trillion. the forecast in tablets and smart phone account for 40% of

all global spending on glajs. that is the latest from the fox business network giving you the power to prosper. ♪

lori: oil trading tight range today, but how pretty close to the $93 barrel mark, fox business contributor, phil flip in the pits of the cme to update us on what's moving oil tread and what to expect for the week. phil? >> a nice pop here today, a whopping ten cents, and it's not surprising that the market couldn't gain a lot of momentum, keep in mind despite the draw downs from last week, 30 million barrels above where we were a year ago with supply and 39 million barrels above the five year average. the market is hesitant, especially considering the fact that most analysts are looking for a big rebound into the new

year on supplies making it harder for the market to gain upward momentum. lori: on the other side of the coin, there's net gas, having a wild day. what's behind that? >> oh, another historic day. the department of the energy, the energy information agency, reported that we're producing more natch right lane gas than we ever have before. that put a damper on the market that was rallying on cold wr weathers, and that's historic showing where the energy future is going. we produce more and more, and even now with the big build up in supply, they are putting pressure on the market today boding good things for the u.s. economy and good thing for jobs in the future. lori: we'll take that. nice to end the glass half full sentiment. thank you. >> it is, thank you, lori. ashley: thank you, phil. quarter till now, almost, time for stocks, nicole, how are the finances? >> looking overall that we're improving here on the markets overall. the dow jones industrials now

down just 56 points. down more earlier today. here's a look at the financials. we saw bank of america, citi group, names moving higher, and, of course, bank of america now settling and moverring forward, reaching the deal with fannie mae to settle the claims for about $10 billion and saw shares in citi group and bank of america heading, and wells fargo down three qqarters of 1%, and dow component as well, under pressure, but certainly a lot of news and 52 week highs as well. back to you. lori: nicole, thanks a lot. ashley: you are up. lori: sky high u.s. corn prices forcing buyers to switch to imports. what can be done to bring prices down? that's next. ashley: good question. first, today's winners and losers. dow down 58 points or thereabout. we have winners, apple, up nearly 4%, and facebook creeping ever closer to the $30 level.

it's up again at 3.33%. we'll be right back. ♪ [ woman ] if you have the audacity to believe your financial advisor should focus on your long-term goals, not their short-term agenda. [ male aouncer ] join the nearly 7 million investors who think like you do. face time and think time make a difference. at edward jones, it's how we make sense of investing.

♪ lori: interesting phenomena here with u.s. corn. it's too rich for the world's blood. american exports down 50% from a year ago as countries like china and japan turn to brazil for their corn.

jeff block live from map l hurst farm in rochelle, illinois with more for us. >> they grow the most expensive corn in the world, and, in fact, the bins you say, maple hurst farms, they are fuller than they would be. take a look at prices. looking at prices, the big runup, if you look at the year chart, the big runup because of the drought, and allendale, one company that manages risk and make money on the markets, you are seeing the -- it didn't come down that much. the price didn't come down much. >> no, the price department come down much. we are higher than we are traditionally this time of year on a historical basis, but there's a good correction over the last three months because we're rationing out demand, and end users -- >> going elsewhere. >> exactly. >> spotlight japan, the biggest market you sell to. if you look at the cost of corn

to japan with the shipping from wherever it comes, the u.s. is by far the most expensive corn. ukraine is the cheapest. argentina and brazil in there too, but all less than the u.s.? >> pretty much, yeah. selling anywhere between 30 crepts to 70 to 80 cents cheaper than the u.s. markets now. buyers that buy our grain shopping elsewhere to get a better deal. >> lori, despite the looming draught looming over the midwest, we don't have a lot of snow out here, the fiscal cliff compromise had a boost, tax boost, for folks who do ethanol, renews the food and fuel debate which continues to rage on, especially when you got corn to japan from the u.s. for almost $9 a bushel. lori: decisions, jeff, thank you. ashley: looks cold, but no snow on the ground. jeff, thank you very much. stocks in the red after closing the highest, start of the earning season weighing on

investors' minds. we have a forecast, bobby keiser s&p capital vice president. thank you for being here. am i mistaken that the estimates for the next round of earnings were higher back october 1st and ratcheted down and down and down when it comes to earnings growth. why is that? >> they ratcheted down quite a bit, beginning of october looking for basically double digit earnings growth in the fourth quarter, 10%, and now it's 3.4% on top of revenue growth. ashley: big cut. >> a huge cut. a rationalization of expectations given the economy remains relatively soft dealing with large amounts of uncertainty around the fiscal cliff which is hurting the market today. ashley: what's the drag? >> a big picture view of the fiscal cliff, and we always thought it was unthinkable that we would go over the cliche because the consequences would be too large, and congress, unfortunately, dealt with the first half, the tax policy, the

tax code, and now there's equal more uncertainty with what they do around reform, and it's just a huge question mark. we've been looking to congress to wrap it up cleanly and produce what we've been referring to as a stimulus dividend to boost optimism in the economy, but they are not off to a strong start. ashley: all right. sectors you think that have positive results? which ones do you like? >> consumer discretionary and financials supposed to be strong this year, but that's predicated on the economy building momentum on the housing sector, and, really, we're thinking a cautious view. the s&p could be at 1600 this year. ashley: okay. >> based on more of the same. the economy continues to grow at -- ashley: bumbling along. >> at 2%, exactly. when everything's said and done, it's called "the cliff," but it's tightening, fiscal tightening. what offsets tightening?

the ben bernanke fed doing everything they can. they went all in on housing. we're looking to signals from the housing sector starting in february and march -- ashley: who holds the key -- >> winter time is slow, but february and march, should have clear signals putting the cliff behind us if the economy ramps up and produces that double digit earnings growth at the end of this year, originally expected for the fourth quarter. ashley: companies have cash on hand, waiting to invest in cap and hiring and what have you, but the 2% payroll tax hike hurts everyone. that has to hurt consumer discretionary in a form or fashion. >> it will unless -- it's 2% readjustment of the payroll tax, and wealthier households pay more, and that's just the consequence of the political situation we're in, but the economy, the housing sector could yet be a huge end gin of growth if it didn't get derailed, and that comes down to confidence and what the economy, and particularly, the unemployment rate is going to do because we bump along now to

7.8% unemployment. 23 -- if it resumes lower, then there's reason to believe housing will do better, and housing can overcome the fiscal restraint. ashley: right, interconnected. >> very much so. interesting year. ashley: that's for surement thank you, bob, appreciate it. >> thank you. lori: if you have kids or for that matter if you were a kid -- ashley: yes, still a kid. lori: familiar with legos. today at the consumer electronics show in las vegas, the company announced a new feature to the low tech toy called the reptar, a new $350 kid to talk to iphone and itouchs through blue tooth wireless connection. cool. the company says the kit will be available later this year. again, it sounds like a toy for big kids. ashley: that would be me. cheryl casone goes through the last hour of trading with the ceo of athena health, talking

about mobile where information is streamlined, patients, doctors, health care providers all getting on the same page. sounds good. a fox business exclusive. "countdown to the closing bell" is next. lori: have a good afternoon. ♪ we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your nk takes more money than a stranger, you need an ally. ally bank. your money needs an ally. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my oions. then i got a medicare supplement insurance plan.

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